US economy starts showing signs of adverse impact of higher tariffs

US markets ended the day in red yesterday, 5^th August, 2025. This, after some latest economic data showed that the US jobs market has been in a weak state for quite some time. USA’s trade deficit in June came down year-on-year by 16% to $60.2 billion. This is the lowest trade deficit in more than 2 years. Imports of consumer goods came down significantly as the impact of higher tariffs started getting shown. US trade deficit with China came down by almost 33% to $9.5 billion, in June. Average tariff rate that USA imposes is now 18%. According to data from The Economist, this is the highest level of US tariffs since 1934. Meanwhile, President Donald Trump has said that US is very close to reaching a trade deal with China.

Nasdaq ended the day, yesterday, down by 137.03 points or 0.65%. Dow Jones ended the day, down by 61.90 points or 0.14%. S&P 500 ended the day, down by 30.75 points or 0.49%.

European markets gained

Euro Stoxx 50 ended the day, yesterday, up by 7.27 points or 0.14%.  Dax ended the day, up by 88.38 points or 0.37%. FTSE 100 index ended the day, up by 14.43 points or 0.16%.

Asian markets start the day on a strong note

Asian equity markets have started the day today, on a strong note. At 9:13 a.m. 6^th August, 2025, Nikkei 225 is up by 253.19 points or 0.62%.  Hang Seng index is up by 45.16 points or 0.18%. Shanghai composite is up by 9.94 points or 0.27%. Kospi index is down by 8.40 points or 0.26%.

Indian markets are likely to see another day in red, today. Indian equity markets are unlikely to see any respite until an Indo-US trade deal is done.

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Source: Dow Jones